(Reuters) -Coach parent Tapestry will sell its Stuart Weitzman brand to Dr Scholl’s footwear owner Caleres for $105 million in cash, the companies said on Wednesday.
The divestment comes months after Tapestry said it was focused on driving growth for its organic business and had “significant runway ahead” following a derailed $8.5 billion merger deal with Michael Kors-owner Capri.
While Tapestry witnessed strong demand for Coach’s Tabby handbags in the holiday quarter, Kate Spade and Stuart Weitzman struggled due to weak luxury spending in North America and China.
Stuart Weitzman, which made up about 3.6% of the company’s total annual revenue, reported an increase in full-year loss to $21.2 million from $6.7 million a year earlier.
“Stuart Weitzman will be a lead brand for Caleres, and with this combination the brand portfolio segment will generate nearly half of our total…
